A mechanic’s lien is a security interest in real or personal property that is acquired by someone who adds material or labor to improve the property. A mechanic’s lien usually remains in effect until the lien holder (the auto repair shop) is paid for the material or labor added to the property. For a movable piece of property like a car, the property owner’s failure to pay the auto repair shop for material or labor may allow the auto repair shop to keep possession of the car until the owner pays for the material and labor. In the auto repair context, a mechanic’s lien is sometimes called a garageman’s lien.
In New Hampshire, a mechanic's lien, also known as a garageman's lien in the context of auto repairs, is a legal claim against a vehicle for unpaid repairs or improvements made by an auto repair shop or mechanic. Under New Hampshire Revised Statutes Annotated (RSA) 450-A, any person who by labor, skill, or materials improves a motor vehicle has a lien upon that vehicle for payment. This lien allows the repair shop to retain possession of the vehicle until the debt is paid. The lien must be perfected by following specific statutory procedures, which include providing notice to the vehicle owner and filing the lien with the appropriate state agency within a specified time frame. If the debt remains unpaid, the lienholder may enforce the lien through a sale of the vehicle after proper notice and public auction, as outlined in the statute. It is important for both vehicle owners and repair shops to understand their rights and obligations under New Hampshire's mechanic's lien laws to ensure proper legal procedures are followed.